Align is a dental consumer products company that has been struggling in the post Covid world.
2022 downgrades were part of the pandemic dislocation & management’s over-optimism.
We believe, ALGN’s business model and competitive position have not been impaired.
We see the potential for earnings growth to rebound to 30% over 2022-25 driven by a recovery in revenue growth and operating margins.
The multiple is below historical average and low relative to peers, hence why we see 78% upside potential over a couple of years.
Potential Upside: $514 (+78%)
Sensible Downside: $230(-20%)
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